USD/JPY analysis: weakening yields support a bearish extension

Valeria Bednarik FXStreet

USD/JPY Current price: 112.62

The USD/JPY pair posted a modest advance this Monday, ending the day at 112.63, and having met selling on an advance up to its 200 DMA, around 112.90. The JPY saw little action at the beginning of the week as Japan banks were closed on a local holiday, with the main event scheduled for this week being the BOJ's monetary policy meeting early Thursday, but no big surprise is expected from Kuroda this time. US Treasury yields traded marginally lower daily basis, indicating a possible yen recovery for the upcoming sessions. In the meantime, the pair continues finding support around 112.30, the 38.2% retracement of the latest bullish run, and below the mentioned 200 DMA, with the scale lean towards the downside. In the 4 hours chart, the early advance was unable to surpass a still bullish 20 SMA, while technical indicators have retreated from their mid-lines, supporting a bearish extension on a break below the mentioned Fibonacci support and with scope then to test the 111.60 region.

Support levels: 112.30 111.90 111.60

Resistance levels: 112.90 113.20 113.50

View Live Chart for the USD/JPY

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD holds lower ground near 1.1850 ahead of EU/ US data

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1850 in European trading on Friday. A broadly cautious market environment paired with modest US Dollar demand undermines the pair ahead of the Eurozone GDP second estimate and the critical US CPI data.

GBP/USD keeps losses around 1.3600, awaits US CPI for fresh impetus

GBP/USD holds moderate losses at around 1.3600 in the European session on Friday, though it lacks bearish conviction. The US Dollar remains supported amid softer risk tone and ahead of the US consumer inflation figures due later in the NA session on Friday.

Gold trims intraday gains to $5,000 as US inflation data loom

Gold retreats from the vicinity of the $5,000 psychological mark, though sticks to its modest intraday gains heading into the European session. Traders now look forward to the release of the US consumer inflation figures for more cues about the Fed policy path. The outlook will play a key role in influencing the near-term US Dollar price dynamics and provide some meaningful impetus to the non-yielding bullion.